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 The news that shaped the week in responsible investing 
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Dear SRI reader,

The
Task Force on Climate-related Financial Disclosures Recommendations are out since yesterday and at first glance they seem to be concise, practical and to the point, precisely what users were advocating for. The recommendations focus on the financial impact of climate related risks and opportunities, targeting companies’ strategic risk management planning. Specifically, they look at how that translates in financial impacts. The outcome of that analysis, at company level, needs to be reflected in the income statement, cash flow statement and balance sheet, in other words, in the mainstream annual financial filings and not as part of a separate report. This is a strong statement in its own right, of course.
Drawing from the existing climate-related disclosure regimes, these recommendations were devised to be considered as complementary, with the understanding that a certain degree of evolution will inevitably continue to take place in the space of climate related information. This spirit of integration with existing guidelines is very practical for users.
Of particular merit is the work done by the Taskforce to differentiate the reporting target versus the audience, the mandatory or voluntary nature of the reporting and the types of climate related information needed. As already foreseen, non-financial sectors are also included as part of the exercise though, as already indicated in the consultation, we feel some crucial ones are still missing. We hope that going forward these players will be accounted for, also as a way of considering their impacts through their value chain.
The relevance of scenario analysis is once again reinforced to feed the strategic and financial planning process of reporting entities and in order for them to demonstrate to a wide range of stakeholders how resilient their climate strategies are. Scenario analysis in this way becomes not only a reporting mechanism but an empowering tool for reporting entities to demonstrate how they are concretely integrating climate into their strategy as a way to increase their value. An engagement instrument to start important conversations with investors.
Yet another merit of the recommendations is to promote a general climate of exchange with different players to promote best practice and advance further in sharing experiences and approaches to climate related scenario analysis. Only through impactful collaborations, can great challenges like the one of climate change, really be overcome.
Eurosif is very much supportive of these recommendations and we hope investors will have ample opportunities to continue leading the way in trying to resolve global issues of paramount importance for future generations.
Happy reading,
Flavia Micilotta
- Eurosif's Executive Director
ESG
Commission takes further steps to enhance business transparency on social and environmental matters (European Commission) The Commission has today adopted guidelines on the disclosure of environmental and social information. These guidelines will help companies to disclose relevant non-financial information in a consistent and more comparable manner. The aim is to boost corporate transparency and performance, as well as encourage companies to embrace a more sustainable approach.
To see Eurosif's response, please click here.

G20 is 'test run' for Trump-era climate governance (EUobserver) The next litmus test for effective global climate governance comes in July, when leaders from countries accounting for 80% of global emissions meet for the G20 summit in Hamburg, Germany, on 7-8 July.

EEFIG launches energy efficiency investment framework (Environmental Finance) A framework has been launched to encourage financial institutions to embrace energy efficiency investments. The Energy Efficiency Financial Institutions Group (EEFIG), which was set up in 2013 by the European Commission and UNEP Finance Initiative, said the EEFIG Underwriting Toolkit is a practical guide to energy efficiency transactions.

 


Piazza Affari, la sostenibilità di 188 pmi (Il Sole) Ottanta società quotata sul segmento Aim, 71 sullo Star e 37 Mid Cap (non Star). Da oggi, 26 giugno, a queste 188 piccole e medie imprese quotate in Piazza Affari verrà inviata una richiesta di informazioni da parte dell’Ufficio studi Sole24Ore e dalla redazione di Plus24. Un questionario strutturato in modo semplice e focalizzato sui tre pilastri della sostenibilità: ambiente, sociale e governance.

Energy giants launch 'Make Power Clean' campaign to cut subsidies for polluting plants (BusinessGreen) Some of Europe's most powerful players in the energy sector joined forces yesterday to launch a new drive to set an emissions cap for future energy projects that benefit from public subsidies. The Make Power Clean campaign is backed by 13 companies and organisations, including high profile names such as Shell, Statoil, Siemens and Total.

'No legal barrier' for UK funds on ESG investments: Law Commission (Investment & Pensions Europe) Defined contribution (DC) pension schemes in the UK have invested much less than peers abroad in socially and environmentally beneficial investments because trustees seem unsure whether they are allowed to, according to a new report.

Can Good Corporate Citizenship Be Measured? (NY Times) For all the happy talk about focusing on ESG issues, many on Wall Street have privately cast a skeptical eye, chalking up all the bluster on the topic to politically correct marketing efforts run amok. That’s why a new study that tries to quantify and correlate stock performance with E.S.G. factors is generating a lot of chatter among the investor class. 
 
Investors
Few European pension funds consider climate change costs (Funds Europe) Only 5% of more than 1,000 European pension schemes surveyed had considered the investment risks posed by climate change, meaning there needed to be more urgency over the issue, said investment adviser Mercer.

Conventional Energy Investors Target Renewable Assets (Institutional Investor) 36% of large institutional investors prefer renewable assets to traditional energy such as oil, according to a Prequin report.

Lawyers: Pension funds must increase efforts to reclaim damages (Investment & Pensions Europe) Pension funds must become more assertive in reclaiming damages caused by companies in which they are invested behaving improperly, legal experts have argued.

China sets up pilot zones to boost green finance (Eco-Business) China announced plans on Monday to set up pilot zones for green finance, supporting its industrial upgrades and anti-pollution campaign. Each of the five pilot zones will support different initiatives — from energy savings and emission reduction to agriculture and agricultural waste treatment — through innovative green credit products.

 


Nordics consider alternative to EU emissions trading system (EUobserver) If the European emissions trading system is not reformed to work efficiently, a Nordic carbon price floor could be introduced to secure future green investments in the region, according to a new strategic review of energy co-operation by the Nordic Council. The plan, which has been in preparation for over a year, is penned by Finnish businessman Jorma Ollila, who had formerly chaired Royal Dutch Shell for almost ten years and was the chairman and CEO of Nokia.
 
Asset Managers
French regulator calls for reform to ESMA (The Trade) The Autorité des Marchés Financiers (AMF) has called for reforms to the governance and central role of the European financial markets regulator, in response to a consultation. The AMF put forward three ways to strengthen the decision-making process at (ESMA), including reforms to the appointment of a chairperson.

News Corp, Getty Images back EU in Google case (Politico) A number of U.S. companies published a joint letter Monday addressed to the European Commissioner for Competition Margrethe Vestager in support of penalties against Google for “anticompetitive conduct.”

Solactive & Candriam launch factors sustainable index family (Investment Europe) Solactive and Candriam launched the Solactive Candriam factors sustainable index family offering exposure to companies with sustainable and responsible investing criteria as determined by Candriam’s SRI screening methodology. The family is composed of five fundamentally-weighted indices with factor tilts, including three equity and two fixed-income indices, which are used as the basis for five new ETFs issued by Candriam and trading on the Paris Euronext Stock Exchange (and cross-listed on Amsterdam Euronext).

 


Six things to look out for in the FCA’s asset management review (Financial Times) The Financial Conduct Authority will publish new business rules that will affect the nation’s 1,840 asset management companies and their dealings with pension funds, financial advisers, retail investors and investment consultants. The UK regulator is considering sweeping reforms after criticising fund managers for generating consistently high profits, lacking transparency on fees and failing to pursue price competition.
 
QUOTE OF THE WEEK
"We need a fair Europe. This is what an overwhelming number of citizens expect from us. Taxation plays a big role in this

Pierre Moscovici, EU Comissioner for Economic and Financial Affairs, Taxation and Customs, speaking on Wednesday the 28th of June at the Tax Fairness Conference in Brussels.
Copyright © 2017 Eurosif, All rights reserved.


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